CFTC Issues No-Action Relief to Market Participants Providing Services to International Financial Institutions (CFTC Letter 15-37)

The CFTC Division of Swap Dealer and Intermediary Oversight ("DSIO") issued no-action relief to market participants from the requirement to register as an introducing broker ("IB") or a commodity trading advisor ("CTA"). The relief applies to activities involving swaps for international financial institution ("IFI") customers located within the United States. (The term "IFI" generally covers institutions such as the World Bank and similar multilateral development banks.)

According to the DSIO, granting this request treats IFIs in a manner similar to that in which the CFTC has treated IFIs in relation to foreign futures and options, and swap dealing activities. The letter also stated that the relief is consistent with the CFTC's stated purpose in promulgating the exemption from registration for IBs and CTAs under CFTC Rule 3.10(c)(3).

The relief provided will end at 12:01 p.m. Eastern time on either the effective date or the compliance date of any final rule or final order (whichever is later).

See: CFTC Letter 15-37; CFTC Press Release.